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Recently, the Insolvency and Bankruptcy Board of India (IBBI) tweaked its regulations to allow the Committee of Creditors (CoC) to invite separate resolution plans for each real-estate project, rather than dragging the whole firm into insolvency proceedings. The regulations further also enable the CoC to establish a monitoring committee for overseeing the implementation of the resolution plan. Discussing this, I shared my views on how these amended regulations could be beneficial for homebuyers and help in controlling unnecessary expenditures of the debtors. Read the full news story here - Financial Express (India) - https://shorturl.at/dgkq1 BW Businessworld - https://shorturl.at/kABFT #ibbi #realestate #realty #ibc #regulations #lawyer #legalinsights

In line with the commitment of maintaining a dynamic and responsive regulatory framework that is aligned with the evolving market realities and requirement of stakeholders, the Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper focused on improving real estate resolutions. The discussion paper by the IBBI highlights practical issues in real estate insolvency and proposes changes to create a more responsive and efficient framework that better addresses the needs of stakeholders in the real estate sector. Read more: https://bit.ly/3O4Jn4Q

Hey folks! 👋 Here are some key updates in the Insolvency and Bankruptcy Code (IBC) The Insolvency and Bankruptcy Board of India (IBBI) is introducing essential changes to enhance the IBC framework: 🔹 Mediation for Operational Creditors IBBI has proposed revised regulations allowing operational creditors to opt for voluntary mediation before starting insolvency proceedings. This aims to ease judicial burden and reduce delays. If mediation fails, a non-settlement report will accompany the insolvency application to expedite the process. Public comments on this proposal are invited until November 24. 🔹 Centralized Auction Platform Starting November 1, 2024, all assets in liquidation cases will be listed on a centralized platform, eBKray, managed by PSB Alliance. This platform addresses issues like information asymmetry and aims to boost recovery rates by providing a transparent, unified view of assets, including detailed asset information, photos, videos, and auction dates. This shift seeks to enhance transparency, increase bidder participation, and maximize returns. 🔹 Interim Representative for Creditors A new amendment to CIRP regulations introduces the concept of an “interim representative” for classes of creditors, such as homebuyers, while the appointment of an authorized representative is pending approval by the NCLT. The interim representative will have the same rights and duties, ensuring effective representation in creditor meetings from the outset of the insolvency process. This move aims to streamline proceedings, reduce delays, and prevent gaps in decision-making during critical stages. . . . . #finance #money #IBBI #IBC #Insolvency #Bankruptcy #CorporateLaw #India #CIRP #Homebuyers #Recovery

IBC played key role in revival of real estate sector, says IBBI Chairman Mital The Insolvency and Bankruptcy Code (IBC) has emerged as a crucial instrument in the rejuvenation of the Indian real estate sector, fostering confidence among stakeholders and paving the way for the timely resolution of distressed assets, Ravi Mital, Chairman, IBBI has said. #realestate #property #law #nclt #ibc #therealtynews #investors #investments #construction #investors #investments #resolution #realestatedevelopers #realestateagents #assets #distressedassets https://lnkd.in/gJyRtMq5

NCLAT ORDER DATED 27Th MAY 2024 A Milestone in Insolvency Resolution As the Resolution Professional (RP) for Radius Estates & Developers Pvt. Ltd., I am pleased to share a significant milestone in the company's Corporate Insolvency Resolution Process (CIRP). This journey reflects the collaborative efforts of creditors, homebuyers, and a dedicated team. Key Highlights: 1. Adherence to IBC Procedures: - Ensured compliance with the Insolvency and Bankruptcy Code (IBC), conducted regular CoC meetings, and maintained transparency. 2. Effective Stakeholder Management: - Addressed objections from dissenting creditors and engaged closely with all stakeholders. 3. Critical Role of Interim Finance: - Secured Rs. 450 Crores in interim finance from Adani Goodhomes Pvt. Ltd., crucial for immediate financial needs, including the FSI premium to MCGM and settlements. - Enabled the recommencement of construction, safeguarding the project’s viability. 4. Achieving Approval and Implementation: - Guided the approval of the Resolution Plan with 83.93% CoC vote shares. - Oversaw the immediate implementation, ensuring timely completion and delivery to homebuyers. I appreciate the proactive role of IBBI, IIIPI, NCLT, and NCLAT in the success of the IBC framework. This success underscores the importance of interim finance in insolvency proceedings and highlights the RP’s critical role in achieving positive outcomes for all stakeholders. Thank you to the CoC, legal advisors, and all involved for their unwavering support. It gives me immense satisfaction to successfully resolve seven CIRPs in the real estate sector having claims of more than Rs 7500 crores and interest of more than 5000 homebuyers/Slumdwellers under the provisions of IBC and the other 5 CIRPs having claims of more than Rs 15000 crores are ongoing. It has been possible to achieve these milestones only because of IBC provisions. Incorp Restructuring Services LLP (IPE) #InsolvencyResolution #IBC #CorporateLaw #InterimFinance #JayeshSanghrajka #InsolvencyProfessional #ResolutionProfessional #CorporateGovernance #IBBI #IIIPI #NCLT #NCLAT

In a recent amendment done by Insolvency & Bankruptcy Board of India (IBBI), Our Partner - Insolvency & Restructuring Practice, Anjali Jain shares her insights with the Financial Express (India) in a story, "Requirement of separate bank account for each project would help in facilitation of project wise resolution and to supplement this, the RP is further empowered to invite resolution plan for each real estate project as resolution of individual projects would pave the way for better price discovery, competitive bidding and early resolution in comparison to group project resolution. Various projects of the same corporate debtor have different stages of completion and even have varied requirements of funds and the existing rules were insufficient to accommodate the diversity of such project specific needs": https://lnkd.in/g6qamrDv #realestate #thehindu #insolvency #bankruptcy #insolvencyandbankruptcy #areness #arenesslaw #legaladvice #legalinsights #ibbi #realestatecompany #companylaw #regulatorycompliance #transparency #finance

Allotted Flat Won't Be Part Of Liquidation Process: IBBI Most real estate projects have not faced that situation yet. 🔖NEW DELHI: New rules of Insolvency & Bankruptcy Board of India (IBBI) provide for exemption of allotted property from liquidation process, providing much-needed relief to thousands of home buyers, whose real estate projects are caught in the insolvency resolution process for years with fear of liquidation dangling over their head. 🔖"Wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor," IBBI said. 🔖This means that homebuyers, who have got possession of their flats, can stay in them even if the project goes into liquidation as their property will be outside the ambit of the exercise. Most real estate projects have not faced that situation yet. 🔖The change in rule will mean that the liquidator can reduce the reserve price by up to 25% for assets, with existing valuation of the corporate insolvency resolution process (CIRP) once, provided it is approved by the Stakeholders' Consultation Committee (SCC). For assets where fresh valuation is conducted during liquidation, the reserve price can be cut by up to 10% in subsequent auctions, with SCC's approval. 🔖Besides, liquidators have been given the power to sell assets of a company through private sale but through prior consultation with SCC. The steps are part of an exercise by IBBI to improve the liquidation process. Separately, on Wednesday, an expert panel recommended phased introduction of a voluntary mediation as a dispute resolution mechanism under the Insolvency & Bankruptcy Code. 🔖The committee has proposed the establishment of a dedicated and specialised NCLT-annexed insolvency mediation cell with an independent secretariat to administer, oversee, and manage the conduct of insolvency mediations under the law. artcile credit-times of india #cs #csexecutive #csprofessional #ca #caintermediate #cafinalist #cafinal #cma #cmainter #icsi #icai #insolvencyandbankruptcy

Our Partner, Anoop Rawat, shares his expert views with The Economic Times on the recent amendments by #IBBI to accelerate #insolvencyresolution in the #housingsector. The IBBI has revised regulations to enable the appointment of an interim representative for groups of creditors, such as #homebuyers, until the #bankruptcy #court approves a final appointment. This aims to expedite the rescue of distressed #realestate companies. Commenting on the development, Anoop Rawat said, “The amendment aims to bolster the rights of classes of financial creditors and ensure that they have uninterrupted representation in the CoC.” Read More: https://lnkd.in/gZBgjzxn   #CIRPregulations #ClassofCreditors #InsolvencyProfessionals #FinancialCreditors #CoC #InsolvencyandBankruptcy

The Insolvency & Bankruptcy Board of India (IBBI) has given a boost to the real estate sector with the introduction of the concept of ‘project-wise’ resolutions in the real estate insolvency cases. Commenting on the same, Partner Anoop Rawat said, “IBBI has yet again proved that it is a dynamic regulator. Many operational difficulties have been resolved in the latest amendments. The key changes include removing the comingling of funds in real estate projects by prescribing separate bank accounts for real estate projects and allowing CoC to invite resolution plan for each project or group of projects.” Read Here: https://lnkd.in/ga9cC-s2 #insolvency #bankruptcy #ibc #ibbi #coc

In a move involving the insolvency proceedings of real estate builders the Insolvency and Bankruptcy Board of India (IBBI) has suggested that the registration of real estate projects can be allowed in insolvency cases involving real estate builders if an Occupancy Certificate (OC) with respect to the said project has been issued by the competent authority. IBBI suggests that the mere initiation of insolvency proceedings should not hinder registration if the project is legally operational and meets compliance requirements. This suggestion aims at creating a balance between protecting creditors' rights on one hand and protecting the interests of the home buyers on the other hand who have invested in purchase of the home from the builder. https://lnkd.in/gRG5afvm #IBBI #Insolvencylaw #RealEstate #IBC #LegalUpdates #LegalInsights #Lawsquare